There are a number of outlets portraying a California short sale as a quick fix for people who are underwater with their homes.  Many financially troubled borrowers started to think that a foreclosure or a short sale of their home meant their mortgage woes were over.  Unfortunately, for many people, this turned out not to be true at all.

Many homeowners who tried a short sale to rid themselves of a home they couldn’t afford found that lenders and banks are still coming after them.  A short sale is when you sell your home for less than the outstanding mortgage.  This is done in hopes that the mortgage company will accept the lower dollar amount, even though the company will have lost money.  However, lenders and banks have no legal responsibility to accept a lower offer and can go about trying to get the rest of the money.  In fact, mortgage companies are sometimes taking legal action to recover unpaid amounts.

Another troubling development is that a number of companies that hold mortgages or home-equity loans are requiring borrowers in short sales to sign a promissory note.  This promissory note is a written promise to pay back a loan or debt.  This means that at the end of the short sale, you are without a home and still in debt.

Short Sale Alternatives

Selling your home for less than it is worth is a “lose-lose” situation, because you can wind up without a home and still in deep debt.  In many cases, the debt can be substantial.  Currently, an individual living in Las Vegas, found their home was worth 2/3 of what he paid for it, meaning that a short sale would leave him owing $100,000 on the original mortgage.  California home loan modification attorneys are almost pulling their hair out when they think about the countless people who are simply giving up the hard earned equity and memories they have poured into their homes.  A loan modification could be the answer that not only keeps you in your home, but helps you get payments that are reasonable as well as affordable.

Whereas a short sale is strongly opposed by lenders and banks, California loan modifications are often encouraged by banks and lenders as a way to keep people in their homes.  With a California loan modification attorney working for you to renegotiate the terms of your loan, you could end up with a lower payment and your home.  People who go through short sales still have to find a place to live as well as a way to pay for the remaining debt; worst of all they do not own a home to justify the debt they have.  A home loan modification can help you turn a terrible situation into a plus.

If you are considering a short sale, you should take a hard look at a California loan modification; because it may just be the answer you have been looking for. Lower monthly payments, potentially lower interest rates and a whole host of other benefits come with a California loan modification.

Visit us at http://www.feldmanlawcenter.com or call 800-588-0425.

Legal Disclaimer

The information contained herein is provided for general information and advertising purposes only and is not intended to convey a legal option nor legal advice for any particular case or situation. Nothing in this article shall create an attorney-client relationship. Nothing sent to this law office via e-mail shall constitute an attorney-client relationship. Nothing contained in this article shall be construed to be a guarantee or prediction of result. Prior results are provided for general information purposes only and do not guaranty, warranty or predict a similar outcome with respect to any future matter.   Results achieved depend on individual circumstances and not everyone will qualify or be successful in restructuring their mortgage loan.